Lending with a difference
This article appeared in The Sydney Morning Herald (September 12th, 2018). Paul Rathbone talks about securing finance for small to medium businesses. This includes Trade Finance which will be launching soon.
It is increasingly likely that small and medium size businesses are going to find it hard to access funding and working capital following the Banking Royal Commission. A Sydney-based non-bank finance company is keeping the dream alive for small and medium enterprises hungry to succeed.
With official data showing that 10 per cent of all Australian SMBs are in growth mode and that 66 per cent of millennial business owners are eager to grow their business, Classic Funding Group sees a great opportunity to assist with financing these aspirations.
CFG is a lender operating in the sector just below the banks providing finance solutions to SMBs that are flexible, simple and easy to use, ensuring it retains a longstanding happy customer base.
“SMBs can see this world where they’re trying to grow and build their business but they are really battling to get that financed,” says CFG CEO Paul Rathbone.
“And with markets across the world becoming more accessible and international suppliers – particularly in Asia - now part of everyday life for many SMBs, there are opportunities for Australian businesses to expand if they can secure finance”.
With more than 25 years’ experience, CFG provides Working Capital and Cash Flow solutions and is launching Trade Finance.
The new package will be available across Australia directly or through business advisors as an integral part of CFG’s Cash Flow Solutions to cover any component or finished product imported into the country.
It’s an exciting new chapter for CFG.
Rathbone says it’s a massive boost for importers. For example for an Aussie footwear company that must pay its Chinese suppliers up front to have shoes shipped here CFG will structure a Trade Finance facility to pay the Supplier and provide the finance until the finished product is invoiced.
When the Customer invoiced their Australian buyer, they will be able to use their Debtor Finance facility to repay the Trade Finance.
As Rathbone says, “even the most astute businesses sometimes don’t qualify for funding at the mainstream banks due to any number of reasons including a previous tough year, asset appetite or falling into arrears with tax”.
Or sometimes business owners just don’t want a second mortgage on the family home.
“Trust in financial institutions is eroded, topped with a situation where credit is getting harder to get out of a bank”
There’s an increasing split between the large corporations that can get finance and SMBs that may struggle.
“Our Finance solutions help SMBs smooth payments between when they get paid by their customers and fulfilling their financial obligations to their creditors, operating costs and most importantly salaries.
It also helps customers fund the period between paying for goods to when they get paid for it, which can be up to 180 days.
We intend to match their finance needs to the actual trade cycle” Rathbone says.
CFG offers what the big banks have mostly ignored with SMBs.
Savvy Victorian businessman Pravin Silveron, who wanted to jump on the booming homeware and furniture industry, says CFG was instrumental in his small business success.
“The experienced and dynamic team understood my financial needs.”
CFG’s experienced business consultants’ offer tailored solutions to customers in a short timeframe keeping up the ever-changing needs of Australian business.